Income tax savings for the current year on this equipment


Lubbock Healthcare's Controller has calculated that this for-profit company must pay state and federal income taxes this year at a rate of 20 percent. Depreciation on equipment purchased for the Emergency Department will amount to $20,000 this year. Income tax savings for the current year on this equipment will therefore amount to:

A. $2,000

B. $4,000

C. $8,000

D. None

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Financial Management: Income tax savings for the current year on this equipment
Reference No:- TGS02306661

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